Only general-purpose governments, like states, cities, counties, ...

[Kikoku]

Only general-purpose governments, like states, cities, counties, towns, and villages can be primary governments. Special purpose governmental entities, like school districts and hospitals, can never be primary governments.
 
  Indicate whether the statement is true or false

Question 2

The relationships between two primary governments and a third organization may be such that the third organization can be a component unit of both primary governments.
 
  Indicate whether the statement is true or false

[ansleighelindsey]

Answer to Question 1

False. A special purpose government is a primary government, if it has a separately elected governing body, is legally separate, and is fiscally independent of other state and local entities. To be fiscally independent, a governmental unit must be able to determine its budget, levy taxes or set user charges, and issue bonded debt, without approval of another government.

Answer to Question 2

False. One of the requirements of financial accountability is that the primary government appoint a voting majority of the component unit's governing body. A voting majority can be appointed by only one government.